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A party atmosphere had built before the show in Sydney's Botanic Gardens where some had been queuing since dawn to get in.

Those who had bagged the best spots to watch the fireworks relaxed on blankets in the last of the day's sunshine, many wearing 2015 headdresses and clinking drinks.

As the dark descended, loud cheers rang out among the throng in anticipation of the start of the night's celebrations.

Calli Newman, from Ohio in the United States, had travelled from Brisbane telling AAP: "I've wanted to do this for ages."

Her friend, Chris Porter, added: "When you Google the best places for New Year, Sydney always comes out top.

"I started queuing at about 7am but there were a lot of people here since 5am. It's been fun."

Below the gardens hundreds of boats of all sizes bobbed around in the harbour, with those lucky enough to be on board sure to have some of the best vantage points of all to watch the fireworks.

By just before 7pm, Sydney proved its popularity, with viewing spots around the Harbour, including Mrs Macquaries Point, East Circular Quay and Blues Point Reserve in North Sydney at capacity.

Most streets in Sydney's CBD were also shut down for the New Year's Eve celebration, while areas surrounding the harbour, including McMahons Point, Mosman and Potts Point were blocked.

An expected 1.6 million revellers will now wait for an extra round of fireworks at 10.40pm before the big midnight finale where the 12 storey, mystery symbol on the Harbour Bridge will finally be revealed.